Obamacare and my Mother In Law

[Boiler 45,519]

It is the Medicaid or whatever it is called that you can not get, she is entitled to the Obmacare with tax credits if appropriate.

[Joe12345 0]

I just looked at the 2014 tax instructions. This will get ugly.

According to the instructions, you don't have a choice as to whether you claim your mother in law as a dependent. This means, if she doesn't work and lives with you, you are screwed. You have to buy medical coverage or pay the penalty.

If she makes more than about $4,000 in a year (the number is on the form, and will certainly change every year), then she is not a dependent.

If she makes zero - you pay for her medical or penalty. If she makes $4,000, you pay for neither and she pays for neither.

There may be a loophole. Suppose you pay her for child care or housekeeping as a household employee, then charge her for room and board. The difference will be the payroll tax, but 15% of $4,000 gives a break even at $34,000 at 2.5%.